The opportunity to yomp a 265bhp V8 Mustang through San Francisco on the roads used in the filming of the famous car chase from the Steve McQueen movie Bullitt seemed too good to miss. Police outriders closed the streets and photographers' fingers hovered over shutter-release buttons.

The film's car chase has held iconic status ever since its release in 1968. For eight dialogue-free minutes, McQueen's Ford Mustang Fastback takes on hired assassins in a Dodge 440RT Charger. Ford used the celluloid connection in 1997 with a television advertisement that accompanied the Puma coupe launch and did so again two years later, when the Puma Racing model blitzed the same fog-city roads.

Now the American arm of Ford has woken up to the branding possibilities and created a Bullitt version of the Mustang. First seen in January at the Detroit Auto Show, it is being produced in a 6,500 limited-production run and all but 500 have already been sold. Each is numbered and carries two hologram stickers by way of evidence: one is on view in the engine bay, while the other is hidden, its location known only to the development team in case of future provenance disputes.

Ford has only advertised the car at Mustang Owners' Club meeting burn-outs and via discreet mentions on the internet. We can only assume that an American journalist was right when he estimated that the 6,000 pre-sold cars were mainly bought by enthusiasts as investments.

McQueen's son Chad said he was pleased that Ford had revived one of his father's most famous roles. "It's a great thing that this keeps my father's work alive," he said. "There's a whole new generation of 18- and 19-year-olds who aren't aware of what my dad did as an actor. I've driven the car - in fact, I've been given number 001 off the production line and I think [Ford design director] J Mays and the team have done a great job. The seats are great and being able to steer the ass-end with throttle is just great for someone like me."

Since its debut at the World's Fair in 1964, the Mustang has been America's ultimate cheap-horsepower "Pony" car (competition from General Motors' Canadian-built Camaro and Firebird will end when both cars finish production next year). In 37 years, some 6.9million Mustangs have been sold. This Bullitt version costs $27,000 (£19,397) - $3,695 (£2,640) more than the standard Mustang GT. For that, owners get a mildly uprated 4.6-litre V8 with twin throttle bodies, cast intake manifold, an opened-up and tuned exhaust system and different alternator and water pump drives. The unit gives slightly more torque (305lb ft) than the GT model, but has the same 265bhp power peak at 5,000rpm.

There are uprated Brembo brakes, with red callipers embossed with a Mustang horse logo, 17in five-spoke aluminium wheels and mild coachwork touches (blacked-out grille, smoother sills and modified C-pillar) that form a link to the original '68 Fastback. Inside, leather seats and original-style radial instrument dials complete the package.

The MacPherson strut front suspension and coil-sprung solid rear axle remain the same, but the chassis is lowered and stiffened, with uprated and tuned damping.

It might not be a patch on the handsome old Fastback, but the Mustang Bullitt is not totally unattractive.

This brings us to the driving experience, which sadly doesn't live up to the name. The V8 engine is certainly wonderful and provides loads of lazy torque and massive acceleration in every gear. The exhaust note is a hollow, throaty woofle that builds to a metallic crescendo at high revs. It's not as noisy as the Bullitt soundtrack, but that would be exhausting to live with. Instead, it's a reminder that this is a muscle car in the best sense.

Trouble is, the Mustang Bullitt is also a muscle car in all the worst senses, too. It's just as well the V8 will pull from walking pace in fourth gear because the heavy, ponderous shift action is difficult to master and not something you'd use for the fun of it.

Before any of us had even stepped into the cars, Ford engineers were encouraging us to "turn off the radio and the traction control and drive the car on the throttle". Great in theory, but the Mustang's steering is imprecise, lifeless and heavy, the harsh suspension doesn't give much feedback and the rear tyres leap around over the smallest bumps. The brakes are good, but the pedal feels dead. Few of us felt encouraged to wham the car round a pedestrian-filled town on first acquaintance.

With the photographers waiting for the great jump scene and our short-wave radio giving the all clear, we accelerated up to and over a blind crest only to find a gargantuan pick-up parked in the very spot where we were destined to land. Apparently a local had pulled out of a side street and, seeing all the photographers, stopped to ask what was going on. No, we didn't hit him, but it was a close call and I inwardly thanked Paul Ripley for the exhaustive lessons on interference braking that got us past the pick-up with our hearts in our throats but no mishap.

Pony cars like the Mustang are a great American tradition, but they are unsophisticated and not best suited to European roads. While it doesn't cost a great deal in our terms, the Mustang Bullitt represents a great engine in search of a half-decent chassis. Perhaps it's just as well it isn't coming over here.

Ford Mustang Bullitt

Price/availablity: $27,000 (£19,425). Only available in North America and just 500 remain from a limited edition 6,500 run.